Bitcoin Surpasses $62,500 and MiCA Transitional Period Ends

Bitcoin rebounds above $62,500 as MiCA's transitional period ends in the EU, with significant developments in crypto regulations in Russia and the launch of Ethereum Institutional.

Digital gold rebounded from a local low, the transitional period for MiCA in the EU has ended, and Russia has set a date for launching crypto regulations, among other events from the past week.

Bitcoin Recovers Losses from Late June

After its worst month in four years, the leading cryptocurrency bounced back on July 1 from an almost two-year low of around $57,700, rising above $60,000.

Hourly chart of BTC/USD on Binance. Data: TradingView.

The upward movement began following comments from Federal Reserve Chair Kevin Warsh regarding persistently high inflation in the U.S.

Bitcoin's price continued to recover even amid a sell-off in chipmaker stocks. On Saturday, July 4, the price reached $63,300 (on Binance) but then corrected to around $62,700.

Over the week, the first cryptocurrency gained 4.6%. Several digital assets in the top 10 by market capitalization significantly outperformed the flagship in terms of recovery speed. Solana's price increased by 12.7%, Ethereum by 11.7%, and the Hyperliquid token rose by over 10%.

Source: CoinMarketCap.

Outflows from spot Bitcoin ETFs continued for the eighth consecutive week, totaling $526.6 million. However, during the trading session on July 2, these products attracted $221.7 million.

Source: SoSoValue.

Ethereum-based funds showed similar trends, with investors withdrawing $13.7 million from these products over the week.

Source: SoSoValue.

The cryptocurrency fear and greed index remains in the extreme fear zone. Over the week, the metric rose from 18 to 23, failing to break through the upper limit of the range.

Source: Alternative.me.

The total market capitalization recovered from $2.07 trillion to $2.17 trillion. Bitcoin's dominance continues to decline, now at 57.9% compared to 58.1%. Ethereum's share jumped from 9.2% to 9.8%.

MiCA Transitional Period Ends in the EU

As of July 1, 2026, the transitional period for cryptocurrency platforms under the MiCA regulation has ended in the EU. Companies that failed to obtain a license must cease servicing European clients, according to a statement from the European Securities and Markets Authority (ESMA).

The transitional period allowed companies operating under national rules until December 30, 2024, to continue their activities until July 1, 2026, or until they received a license or were denied one. After this date, operating without authorization will be considered a violation of EU law.

According to the ESMA registry, by the end of the transitional period, there were 244 authorized crypto service providers in the EU and EEA. In the final days, several companies in Italy, France, Malta, and Spain received licenses. Notable platforms with significant spot liquidity include Kraken, Coinbase, and Bitstamp.

Meanwhile, the European Commission (EC) has already begun reviewing the regulation. In May, the EC launched public (for individuals) and targeted (on more technical and legal issues) consultations to assess whether MiCA remains a suitable document given market developments and international regulation.

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Ethereum Ecosystem Launches Structure for Institutional Engagement

An independent non-profit organization, Ethereum Institutional, has been launched within the Ethereum ecosystem to promote the network among banks, asset managers, and other financial institutions.

The organization will work with Ethereum, L2 networks, and projects within the ecosystem. Its goal is to serve as an independent entry point for institutions assessing the second-largest cryptocurrency for tokenization, stablecoins, and other on-chain infrastructure.

The operational team includes David Walsh, Marius Smith, and Matthew Dawson, while the board of directors features Tom Lee, Joseph Chalom, and Walsh.

Key sponsors of Ethereum Institutional include BitMine Immersion Technologies, Sharplink, Inc., and ConsenSys CEO Joseph Lubin. Funding amounts have not been disclosed.

Central Bank of Russia Sets Date for Crypto Regulation Launch

The law regulating the crypto market in Russia may come into effect on September 1, announced First Deputy Governor of the Central Bank Vladimir Chistyukhin at the Bank of Russia's Financial Congress.

After this, market participants will be given time to prepare: companies will need to gather documents for inclusion in the registry, obtain new licenses, and restructure internal processes.

The transitional period is expected to last until July 1, 2027. From that date, administrative and criminal liability for illegal cryptocurrency operations will come into effect, noted Chistyukhin.

He added that if the law and subordinate regulations are adopted on schedule, market participants will be able to start applying for licenses and restructuring processes.

The first operations under the new regime are expected by the end of this year or early next year.

It was previously anticipated that the main framework for the bill "On Digital Currency and Digital Rights" would be prepared by July 1.

Also on ForkLog:

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China's 360 presented a "response" to Anthropic Mythos.
Loopring announced the closure of its DEX.
JPMorgan criticized Strategy's decision to sell Bitcoin.

StarkWare Unveils Roadmap for Protecting StarkNet from Quantum Threats

StarkWare, the company behind StarkNet, has presented a roadmap for transitioning the L2 network to post-quantum cryptography. The plan includes replacing remaining dependencies on elliptic curves and migration tools for existing contracts.

StarkWare described the roadmap, which spans several months, as "the strongest" in the crypto industry. Developers noted StarkNet's architectural advantage — the network uses STARK proofs based on hash functions, which are considered quantum-resistant from the outset.

The plan consists of three phases. First, the remaining elements of cryptography tied to elliptic curves will be replaced, followed by the implementation of post-quantum digital signatures and tools for automatic migration of existing smart contracts.

The final phase will depend on when Ethereum transitions to post-quantum cryptography.

Weekly Recap: Bitcoin Surpasses $62,500 and MiCA for EU Crypto Business